SFPUC staff present Clean Power SF rate study proposing modest residential cut and shift to cost-based rates

San Francisco Local Agency Formation Commission members heard a detailed presentation on Clean Power SF’s power rate study and staff proposal that would set generation rates based on the program’s cost of service rather than tracking Pacific Gas & Electric.

Erin Franks, SFPUC rates administrator, said the study — conducted by an outside consultant and backed by a 180‑page technical report — aims to make Clean Power SF rates “cost based and independent of Pacific Gas and Electric’s rate setting process.” Franks described core policy goals that shape rate design: revenue sufficiency, customer equity, environmental sustainability, affordability, predictability and simplicity.

The staff proposal would reduce the Clean Power SF generation charge for an average residential customer from about $36 a month to roughly $33 a month — roughly $3 in monthly savings compared with the presented PG&E comparison — and, if adopted by the SFPUC commission, would take effect July 1. Franks also said the SFPUC commission will consider adoption at a May 10 hearing.

Franks and Director Mike Himes said the proposal keeps existing customer rate options (time‑of‑use schedules and tiering where applicable), preserves the Supergreen 100% renewable product (noting the residential Supergreen premium would remain about 1¢ per kilowatt‑hour), and commits to updating rates once per year to provide predictability for customers.

On program funding, the presenters recommended increasing Clean Power SF reserve levels to mitigate power‑market volatility and to fund customer programs that support electrification and decarbonization, including electric‑vehicle charging rates and contractor‑focused incentives for heat‑pump water heaters. Franks said the team aims to avoid duplicating state and regional incentives while identifying gaps that local rate resources could fill.

Public commenters during LAFCO’s meeting pressed staff to go further on electrification incentives and on‑bill financing. “We really need to stress building electrification across every single municipal agency in our city,” said one caller, urging Clean Power SF to fund incentives beyond state and regional programs. Director Himes responded that Clean Power SF participates in a range of programs, cited recent bill‑credit and pandemic debt relief efforts and said staff would continue to pursue federal and state funding while expanding local programs where appropriate.

The presentation and public comment session concluded with commissioners asking staff for follow‑ups on program design, acquisition planning and affordability measures; staff said they would return with further details to the SFPUC and to interested bodies.